Binny & Smith
Thesis
Binny & Smith was selling at under book value, had almost no debt, and was trading at around 5x earnings, which suggested a potential 20% return on debt-free equity. This made it an attractive investment opportunity.
Did it work?
inconclusive
confidence: low
The thesis is a pure valuation argument (under book value, ~5x earnings, debt-free balance sheet implying ~20% return on equity) with no stated catalysts or events that could be independently confirmed or invalidated. With no price performance data and no known time elapsed, there is no way to verify whether the market re-rated the stock toward its implied value. The verdict must therefore remain open.